President Donald Trump announced Wednesday he will not impose threatened tariffs on eight European countries after reaching what he described as a framework agreement with NATO Secretary General Mark Rutte regarding Greenland and Arctic security.
Trump said the agreement, formed during meetings at the World Economic Forum in Davos, Switzerland, eliminated the need for tariffs that were scheduled to take effect on February 1. The tariffs, which Trump had set at 10 percent and planned to increase to 25 percent by June, were tied to European opposition to U.S. acquisition of Greenland.
“Based upon a very productive meeting that I have had with the Secretary General of NATO, Mark Rutte, we have formed the framework of a future deal with respect to Greenland and, in fact, the entire Arctic Region,” Trump wrote on Truth Social. “This solution, if consummated, will be a great one for the United States of America, and all NATO Nations.”
Stock markets surged immediately following Trump’s announcement.
In a subsequent interview with CNBC, Trump described the framework as “pretty much the concept of a deal.” When asked to confirm the tariffs would not take effect next month, Trump said, “No, we took that off because it looks like we have, pretty much the concept of a deal.”
NATO spokesperson Allison Hart confirmed the meeting in a statement, saying the framework would focus on ensuring Arctic security through collective efforts of allies.
“Negotiations between Denmark, Greenland, and the United States will go forward aimed at ensuring that Russia and China never gain a foothold — economically or militarily — in Greenland,” Hart said.
The announcement marks a dramatic reversal in the controversy over Trump’s persistent efforts to acquire Greenland for the United States. Danish and Greenlandic officials have consistently stated that Greenland is not for sale.
During a speech at Davos earlier Wednesday, Trump laid out his case for U.S. acquisition of Greenland on national security grounds but said he would not use military force to pursue the territory. He also called for “immediate negotiations” with Denmark.
According to The New York Times, the agreement discussed at Davos involved a proposal to give the United States sovereignty over small pockets of Greenland’s land, though details remain unclear.
Trump said Vice President JD Vance, Secretary of State Marco Rubio and Special Envoy Steve Witkoff would be responsible for ongoing negotiations.
Danish Foreign Minister Lars Løkke Rasmussen welcomed the news, saying “the day is ending on a better note than it began.”
Greenland is a semi-autonomous territory of Denmark and home to a strategically important U.S. military base. The Trump administration has argued that controlling Greenland is crucial for national security as Arctic sea lanes open due to climate change.
